The owner of a property is primarily liable to pay tax, even if the property is occupied by tenants, and can recover the proportionate amount of tax from the tenants.

JUDGMENT :

Amrita Sinha, J.

1. The order dated 24th February, 2021 passed by the Assessor-Collector (North), Kolkata Municipal Corporation (‘KMC’ for short) allegedly in compliance of the direction passed by this Court on 26th August, 2019 in WP No. 24 of 2019 (Indra Devi Rathi & Ors. vs. KMC & Ors.) is impugned in the present writ petition.

2. By the said order annual valuation of the premises was assessed at Rs. 1,65,510/-including non-residential annual valuation of Rs. 1,37,810/-with effect from 3rd quarter of 2005-2006. Bills were accordingly raised considering the premises as partly residential and partly non-residential.

3. The petitioners are aggrieved by the same. It has been contended that the petitioners have let out most of the portions of the subject property which is a seven storied building. The ground and the first three floors of the premises are used for commercial purpose and the rest for residential use.

4. The petitioners contend that the Corporation ought to have valued the property by taking into consideration the mode of use of the same. The Corporation ought to have apportioned the tax amount by segregating the portion used for non-residential purpose and the portion used for residential purpose.

5. It has been contended that there are several tenants in the said property and the Corporation ought to have issued notices upon all the tenants individually prior to fixing the annual valuation of the subject property.

6. It has been argued that the tenants and occupiers of the subject property ought to be made liable for payment of tax and the entire burden of payment of tax ought not to be thrust upon the petitioners who are the sebaits of the debottor property.

7. In support of the submission that the tenants and occupiers of the subject property will be liable to pay tax, learned advocate for the petitioners relies upon the decision passed by the Hon’ble Supreme Court in the matter of Calcutta Gujrati Education Society & Anr. vs. Calcutta Municipal Corporation & Ors. reported in (2003) 10 SCC 533.

8. The petitioners contend that it is the obligatory duty of the Corporation to inspect each premises and prepare the assessment book pursuant to which valuation of a property is required to be calculated. In support of such submission the learned advocate for the petitioners relies upon the provision of Section 178(6) of the Kolkata Municipal Corporation Act, 1980 (‘the Act’ for short).

9. Prayer has been made for setting aside the impugned order of the Assessor-Collector with further direction to apportion the property tax by segregating the portion used for commercial purpose and residential purpose.

10. Learned advocate representing the Kolkata Municipal Corporation submits that the petitioners are in possession of the subject property since 1983. The petitioners, being owners of the property, are obliged to furnish a return in the prescribed form in accordance with Section 182 of the Act. According to Rule 5 of the Kolkata Municipal Corporation, (Taxation) Rules, 1987 return in Form C is to be filed by the owner or the person responsible to pay tax for the purpose of revision of annual valuation of the property. The same has not been done. The petitioners failed to submit any such return.

11. In compliance of the direction passed by the Court in the earlier writ petition filed by the petitioners, the Assessor-Collector considered the issue and passed reasoned order on 24th February, 2021. It was clearly mentioned in the said order that the petitioners did not submit the detail list of tenants with rental status of the individual tenants. Only memorandum of agreement dated 16th August, 1983 and two tenancy agreements of shop rooms for letting out to the sub-tenants was submitted by the petitioners.

12. As the property is recorded in the inspection book records of the Corporation as partly commercial and partly residential, accordingly, the assessment of tax has been made. The first four floors have been assessed as non